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Japan Adjusts Short-Sale Rules;
Tokyo's Nikkei Ends Down 2.1%

By

Jason SingerStaff Reporter of The Wall Street Journal

Updated Aug. 7, 2002 12:01 a.m. ET

TOKYO -- Japanese stocks plunged to levels not seen since a few very tense weeks in February, when concerns about the economy and frail banks raised the prospect of a possible financial crisis. Amid this new downturn, the government said it is fine-tuning the same fix it engineered in February -- new steps to curb stock sales.

In the wake of a selloff on Wall Street on Monday, the Nikkei 225 Stock Average shed 2.1% Tuesday to close at 9501.02, just a hair higher than the 18-year low of 9420.85 set Feb. 6. The index has fallen...